Interim Results

Merrill Lynch World Mining Tst PLC 06 August 2003 FOR IMMEDIATE RELEASE 6 August 2003 MERRILL LYNCH WORLD MINING TRUST plc Interim Results for the six months ended 30 June 2003 Performance to 30 June 2003 Six months Five years Net asset value per share: - capital only -2.7% +124.6% - with net income reinvested -1.7% +146.5% Ordinary share price: - capital only -4.9% +119.7% - with net income reinvested -3.3% +144.9% HSBC Global Mining Index: - capital only* +2.1% +49.8% * Adjusted for exchange rates relative to sterling. Performance is based on mid-market values. Dividends totalling 2.1p per share went ex-dividend on 12 February 2003. Where performance has income included, it is reinvested on the ex-dividend date. Sources: Merrill Lynch Investment Managers, Datastream. • As at 30 June 2003, the net asset value per share and share price were 146.92p and 125.25p respectively (31.12.02, NAV 149.48p, share price 131.75p). • Since 30 June 2003, the market for mining shares has strengthened, and the NAV and the share price were 164.87p and 139.00p respectively as at the date of this announcement. The discount at which the Company's shares trade to NAV was 15.7% as at the date of this announcement. • The Company has received the 'Best Specialist Investment Trust' award from What Investment magazine. For further information please contact the following: Lynn Ruddick 020 7743 2427 Managing Director, Investment Trust Division Merrill Lynch Investment Managers Graham Birch 020 7743 2690 Fund Manager Merrill Lynch Investment Managers Nigel Webb 020 7743 5938 Public Relations Merrill Lynch Investment Managers William Clutterbuck 020 7379 5151 Maitland Consultancy The Chairman, Peter Wilmot-Sitwell, comments: 'Over the first six months of 2003 the net asset value per share ('NAV') decreased by 2.7% and the share price decreased by 4.9%, compared with a rise in the benchmark of 2.1%, all on a capital only basis. This underperformance was due to the portfolio's relatively high exposure to gold shares and the strengthening of the South African rand. Performance of the HSBC Global Mining Index compared adversely to a 7.3% rise in world equities, as measured by the MSCI World Equity Index (capital only). 'The NAV and share price as at 30 June 2003 were 146.92p and 125.25p per share respectively. Since the end of the period, the market for mining shares has strengthened, and the NAV was 164.87p and the share price was 139.00p at the date of this announcement. 'Longer term performance has continued to be excellent, notwithstanding the outcome of the last six months. In this context, I am delighted that the Company has received another award to add to the two received last year, namely 'Best Specialist Investment Trust' from What Investment magazine.' Commenting upon the outlook for the Company, Graham Birch of Merrill Lynch Investment Managers, the Investment Manager, notes: 'Sentiment is gradually recovering in global stock markets and investors have begun to take on more risk. The relative defensiveness of mining shares has therefore become a little less attractive and we have begun to see them underperform somewhat in comparison with broader stock markets. In absolute terms, mining shares should do well if global economic recovery becomes more established. Stronger growth could help reinforce the gradual upward trend in commodity prices and, provided currency markets stabilise, this should flow through into better sector earnings as we approach 2004.' CONSOLIDATED REVENUE STATEMENT for the six months ended 30 June 2003 Six months Six months Year ended ended 30 June ended 30 June 31 December 2003 2002 2002 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Note Income 3 4,364 4,062 8,484 Investment management fees 4 (1,129) (1,187) (2,278) Operating expenses 5 (289) (322) (586) ------- ------- -------- Net return before finance costs and taxation 2,946 2,553 5,620 Interest payable and similar charges (115) (135) (329) ------- ------- -------- Revenue on ordinary activities before taxation 2,831 2,418 5,291 Taxation on ordinary activities (528) (660) (1,181) ------- ------- -------- Revenue on ordinary activities after taxation 2,303 1,758 4,110 Dividends in respect of equity shares 6 - - (3,419) ------- ------- -------- Transfer to revenue reserve 2,303 1,758 691 ==== ==== ===== CONSOLIDATED STATEMENT OF TOTAL RETURN PER ORDINARY SHARE for the six months ended 30 June 2003 Six months Six months Year ended ended ended 31 December 30 June 2003 30 June 2002 2002 (unaudited) (unaudited) (audited) Calculated on weighted average shares: Earnings per ordinary share 1.41p 1.08p 2.52p Capital return per ordinary share (3.97p) 30.80p 30.28p ------- ------- -------- Total return per ordinary share (2.56p) 31.88p 32.80p ==== ==== ===== Calculated on actual shares: Earnings per ordinary share 1.41p 1.08p 2.52p Capital return per ordinary share (3.97p) 30.85p 30.33p ------- ------- -------- Total return per share (2.56p) 31.93p 32.85p ==== ==== ===== Ordinary dividend per share - - 1.60p Special dividend per share - - 0.50p ==== ==== ===== SUMMARISED CONSOLIDATED BALANCE SHEET as at 30 June 2003 30 June 30 June 31 December 2003 2002 2002 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Fixed assets Listed investments at mid-market valuation 238,244 252,106 239,830 Unlisted investments at directors' valuation 4,385 1,312 - ---------- ---------- ---------- 242,629 253,418 239,830 Current assets Investments of subsidiary undertakings 557 2,879 2,131 Debtors 1,102 2,241 164 Cash - - 6,569 ---------- ---------- ---------- 1,659 5,120 8,864 ---------- ---------- ---------- Creditors - amounts falling due within one year Bank overdraft (2,907) (8,867) - Other creditors (2,163) (4,202) (5,327) ---------- ---------- ---------- (5,070) (13,069) (5,327) ---------- ---------- ---------- Net current (liabilities)/assets (3,411) (7,949) 3,537 ---------- ---------- ---------- Total assets less current liabilities 239,218 245,469 243,367 Provision for liabilities and charges (35) - (17) ---------- ---------- ---------- Net assets 239,183 245,469 243,350 ====== ====== ====== Capital and reserves Share capital 8,140 8,147 8,140 Capital redemption reserve 22,779 22,772 22,779 Other capital reserves (2,824) 4,547 3,646 ---------- ---------- ---------- 28,095 35,466 34,565 Special reserve 203,244 203,395 203,244 Revenue reserve 7,844 6,608 5,541 ---------- ---------- ---------- Total equity shareholders' funds 239,183 245,469 243,350 ====== ====== ====== Net asset value per ordinary share 146.92p 150.64p 149.48p ====== ====== ====== CONSOLIDATED CASH FLOW STATEMENT for the six months ended 30 June 2003 Six months Six months Year ended ended 30 June ended 30 June 31 December 2003 2002 2002 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net cash flow from operating activities 3,669 1,576 5,503 Returns on investment and servicing of finance (115) (135) (329) Taxation paid (830) (536) (1,347) Capital expenditure and financial investment Purchase of fixed asset investments (48,040) (54,617) (84,921) Proceeds from the sale of fixed asset investments 39,361 43,586 86,558 Exchange loss on foreign currency transactions (102) (151) (154) Equity dividends paid (3,419) (5,149) (5,149) Purchase of ordinary shares - (3,291) (3,442) --------- --------- --------- Decrease in cash in the period (9,476) (18,717) (3,281) ===== ===== ===== RECONCILIATION OF NET RETURN BEFORE FINANCE COSTS AND TAXATION TO NET CASH FLOW FROM OPERATING ACTIVITIES Six months Six months Year ended ended 30 June ended 30 June 31 December 2003 2002 2002 (unaudited) (unaudited) (audited) £'000 £'000 £'000 Net return before finance costs and taxation 2,946 2,553 5,620 Net sales/(purchases) of investments by subsidiary undertakings 2,062 (131) 1,230 (Increase)/decrease in debtors (337) 52 259 Increase in creditors 1 183 106 Tax on investment income included within gross income (217) (177) (271) Profit on investments by subsidiary undertakings (786) (904) (1,441) --------- --------- --------- Net cash flow from operating activities 3,669 1,576 5,503 ===== ===== ===== NOTES ON THE INTERIM RESULTS 1. Principal activity The principal activity of the Company is that of an investment trust company within the meaning of section 842 of the Income and Corporation Taxes Act 1988. The principal activity of its two subsidiary undertakings, Merrill Lynch Gold Limited and World Mining Investment Company Limited, is investment dealing. 2. Basis of preparation The interim financial statements have been prepared on the basis of the accounting policies set out in the Company's financial statements at 31 December 2002. Income and operating expenses have been accrued in accordance with the same principles used in the preparation of the annual financial statements. The taxation charge has been calculated by applying an estimate of the annual effective tax rate to the profit for the period. 3. Income Six months Six months Year ended ended 30 June ended 30 June 31 December 2003 2002 2002 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Income from investments Dividends: UK listed 677 116 810 Overseas listed 2,818 3,015 6,118 ------- ------- -------- 3,495 3,131 6,928 ------- ------- -------- Interest receivable and other income Deposit interest and other income 83 27 115 Profit on investments by subsidiary undertakings 786 904 1,441 ------- ------- -------- 869 931 1,556 ------- ------- -------- Total income 4,364 4,062 8,484 ==== ==== ===== 4. Investment management fees Six months Six months Year ended ended 30 June ended 30 June 31 December 2003 2002 2002 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Investment management fees 1,100 1,167 2,243 Irrecoverable VAT thereon 29 20 35 ------- ------- ------- 1,129 1,187 2,278 ==== ==== ==== The investment management fee is levied quarterly, based on the gross assets on the last day of each quarter. All investment management fees are charged to revenue. 5. Operating expenses Six months Six months Year ended ended 30 June ended 30 June 31 December 2003 2002 2002 £'000 £'000 £'000 (unaudited) (unaudited) (audited) Custody fee 116 123 236 Administration fee 68 72 139 Registrar's fees and other administrative costs 69 94 138 Directors' emoluments 36 33 73 ----- ----- ----- 289 322 586 === === === 6. Dividend The Board has not declared an interim dividend, as dividends are considered and paid annually in respect of each accounting period. 7. Gearing ratio The ratio of borrowings to net assets at 30 June 2003 were 1.3% (31.12.2002 : nil) 8. Ordinary shares 30 June 2003 30 June 2002 31 December 2002 (unaudited) (unaudited) (audited) The weighted average number of ordinary shares in issue during each period, on which the return per ordinary share was calculated, was: 162,800,000 163,254,853 163,068,062 The actual number of ordinary shares in issue at the end of the period on which the net asset value per share was calculated was: 162,800,000 162,945,461 162,800,000 9. Publication of non-statutory accounts The financial information contained in this interim statement does not constitute statutory accounts as defined in section 240 of the Companies Act 1985. The financial information for the six months ended 30 June 2002 and 2003 has not been audited. The information for the year ended 31 December 2002 has been extracted from the latest published audited financial statements, which have been filed with the Registrar of Companies. The report of the independent auditor on those accounts contained no qualification or statement under sections 237(2) or (3) of the Companies Act 1985. 6 August 2003 33 King William Street London EC4R 9AS DAF/sf/MLWMT/Stock Exchange Announcements/Interim July 2003 This information is provided by RNS The company news service from the London Stock Exchange

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